World Cup: Fifa to rake in billions
NATASHA MARRIAN | JOHANNESBURG, SOUTH AFRICA - Jun 18 2010 16:32
World football governing body Fifa expects its provisional income for
the 2010 World Cup to be about $3,2-billion (about R24-billion), a
spokesperson said on Friday.
The provisional figure was given in reply to a question at a media
briefing at Soccer City in Johannesburg.
Spokesperson Nicolas Maingot said the World Cup was the main source of
income for Fifa, and its revenue from this World Cup would tide it over
for the next four years.
He added that 75% of its revenue would be invested into football
The estimate comes after it was reported that South Africa, which spent
about R63-billion on hosting the event, has granted Fifa a number of tax
A Sunday paper reported that the world soccer body would cause the
country to lose "tens or possibly hundreds of millions of rands in
It reported that the South African Revenue Service had been forced to
agree to a "tax bubble" around Fifa sites, which would exempt the soccer
federation from paying value-added tax, income tax and customs duties.
South Africa reportedly gave Fifa guarantees, including a supportive
financial environment by waiving customs duties, taxes and levies on the
import and export of goods belonging to the Fifa delegation, its
commercial affiliates, broadcast rights holders, media and spectators,
and the unrestricted import and export of all foreign currencies into
and from South Africa.
The guarantees also included ownership of all media, marketing and
intellectual property and that Fifa cannot be sued for claims arising
from the staging of the tournament.
Fifa has taken a tough stance against ambush marketing, taking Dutch
brewery Bavaria to task after it allegedly orchestrated a campaign at
the World Cup match between The Netherlands and Denmark on Monday. Two
womwn have already appeared in court on charges related to the South
African Merchandise Marks Act.
Meanwhile, local organising committee (LOC) spokesperson Rich Mkhondo
would not be drawn on what the extra cost of deploying police officers
at various stadiums would be.
This was after security guards at various stadiums downed tools over wages.
He refused to be drawn on the security debacle facing the World Cup
stadiums across the country.
"There is a dispute between parties. Once we get involved in a public
debate, the issues get escalated," Mkhondo said.
"We are trying to resolve all these issues ... we are not going to do
Five World Cup stadiums have been hit by industrial action since the
commencement of the tournament last Friday.
Initially the strike involved only one service provider, Stallion
security. However, guards from the Fidelity Security Company also
entered the fray on Thursday.
"In our agenda there are no security issues," Mkhondo said.
This after the Mail & Guardian on Friday reported that police were
investigating claims that sabotage by rival security companies was at
the root of the industrial action.
The M&G said it established that the government would have to foot a
bill exceeding R100-million to pay the police officers. This expense was
"supposedly" covered by Fifa and the LOC, the report said. -- Sapa